Houston

Houston area’s housing market gained $42B in value in 2020

A tumultuous year for the financial system, prompted by a worldwide pandemic, didn’t stifle the Houston-area housing market in 2020. The area’s housing market gained $42 billion in value final year, in line with a latest report from Zillow.

Greater Houston’s housing market is now price an estimated $533 billion — up $272 billion from 2011.

Of the Lone Star State’s largest Texas metro areas, Houston’s housing market isn’t essentially the most worthwhile (The Dallas-Fort Worth Metropolitan space holds that distinction) however it did see the biggest complete enhance in value in the course of the pandemic: The Dallas-Fort Worth housing market is price $625 billion, up $38 billion in value in 2020; Austin’s housing market is price $264 billion, up $27 billion in value; and San Antonio’s housing market is price $167 billion, up $9 billion in value.

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At $2.1 trillion, Texas has the fourth most useful housing market in the nation, behind Florida ($2.2 trillion), New York ($2.8 trillion) and California ($7.8 trillion).

Overall, the nation’s full stock of housing, now price $36.2 trillion, gained almost $2.5 trillion in value in 2020 — the very best enhance in a single year since 2005 — in line with Zillow.

“2020 was a remarkable year for the housing market. Strong demand drove intense competition among buyers, causing homes to fly off the market at the fastest pace Zillow has recorded and pushing prices higher,” the report reads. “Housing demand was already strong coming into the year with the large Millennial generation aging into prime first-time home-buying age and mortgage rates hovering near record lows. The widespread shift to remote work during the COVID-19 pandemic prompted many to reevaluate their housing options and supercharged demand.”

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The on-line actual property platform expects the nation’s housing market will make an excellent stronger displaying in 2021.

“We are forecasting almost 6.9 million existing homes will be sold in calendar year 2021, the most sales recorded in a single calendar year since 2005 and the largest one-year increase (21.9%) since the early 1980s,” the platform forecasted in one other latest report.

Several market components are driving Zillow’s optimistic outlook.

“The first is simple momentum — near-term, forward-looking indicators of home purchases have been exceptionally strong in recent months, and that strength is expected to continue. Purchase mortgage applications have risen consistently year-over-year since May, averaging 22% annual growth over that period. And an index of pending home sales from the National Association of Realtors – a look ahead at sales expected to officially close over the ensuing few months — has also experienced double-digit annual growth since June, and was almost 20% year-over-year in October.”

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View the complete report here.

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